The Debt Financing matures on March 31, 2015 and the principal amount is convertible into common shares of the Company (the "Common Shares") at the holder's option into 8,333,333 Common Shares. Simple interest is payable at maturity at an annual rate of 18.0%. If the principal amount is converted into Common Shares, any interest payable on such principal amount shall be forgiven and the Company shall cease to owe, and the holder shall cease to have any right to payment of, any interest amount. In addition, warrants were issued to the holder of the convertible debt, entitling the holder to purchase up to 1,666,667 Common Shares at a price of C$0.07 per share. The warrants expire in three years and are subject to adjustment in certain events.
The Debt Financing is subject to a prepayment right by the Company at 105% of the principal amount at any time from the date of closing, subject to a 30 day notice period and the holder's right to exercise his conversion rights during any such notice period.
The proceeds of the Debt Financing will be used by the Company for general operating purposes.
In conjunction with this convertible debt financing, the Company has also applied to the TSX to amend the exercise price to C$0.08 per share for outstanding warrants to purchase 4,791,572 Common Shares of the Company held by a prior note holder (the "Holder") from the Company's June 2012 and February 2014 convertible debt financings. The Holder is arm's length to the Company. In addition to this re-pricing of the exercise price, the Company also intends to issue new warrants to the Holder to purchase 4,597,443 Common Shares of the Company with an exercise price of C$0.08 per share and an expiry date of February 6, 2017. The amendment to the warrant exercise price and the issuance of the new warrants are being given as consideration for the release by the Holder of a first priority lien in certain of the Company's secured assets and the sharing of security on the remainder of the Company's assets on a pro-rata basis with the new lender under the Company's Debt Financing discussed above. The amendments to the warrant exercise price and the issuance of the new warrants are subject to TSX approval.
About Intermap Technologies
Headquartered in Denver, Colorado - Intermap ( www.intermap.com) is an industry leader in geospatial solutions on demand with its secure, cloud based Orion Platform™. Through its powerful suite of 3DBI applications and proprietary development of contiguous databases that fuse volumes of geospatial data into a single source, the Orion Platform is able to provide location- based solutions for customers in diverse markets around the world. For more information please visit www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect"," project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. You can find a discussion of such risks and uncertainties in our Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
SOURCE Intermap Technologies Corporation
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| Intermap Technologies Corporation
Intermap Technologies: Rich Mohr, Senior Vice President & Chief Financial Officer Email Contact +1 (303) 708-0955; Canada - Financial: Cory Pala, Investor Relations, e.vestor Communications Inc. Email Contact +1 (416) 657-2400 |
